DETERMINANTS OF USE OF SHORT TERM CONTRACTING OF EMPLOYEES IN INSTITUTIONS OF HIGHER LEARNING IN KENYA. CASE STUDY OF KABARAK UNIVERSITY, NAKURU

All organizations experience annual phases when short term contracting is needed in order to complete a large project or meet increased labour demands. Bringing new team member is an expensive exercise. This is because of statutory taxes, benefit costs and personal expenses. Costs of hiring full time employees far exceeds the amount you would spent bringing in someone on short term. Staff short term contracts are an essential element of an effective human resources strategy for empowerment and performance. The short term contracting is supposed to be closely aligned with the type and duration of function performed, easy to administer, fair and transparent. The purpose of this study was to examine the determinants of use of short term contractual employees by organizations. The unit of study was Kabarak University, which has a considerable large number of employees on short term contracts, as a case. The main objective of the study was to analyze the determinants of use of short term contracting of employees. The target population of the study was 244 from which a sample size of 70 was determined. The research used descriptive technique, specifically case study. The quantitative approach was used. Data was collected using primary and secondary data collection techniques. Primary data was gathered through structured questionnaires while the secondary data was gathered using the available records, policy documents and manuals. The reliability and validity of the instrument was established through a pilot study. Data was analyzed using statistical package for social science (SPSS) version 20 and Microsoft Office Excel. The data was presented using percentages and means. To determine if the independent variables influence the dependent variable z-test was done. The study revealed that cost reduction has a significant influence on use of short term contracting of employees. The study, therefore, concluded that use of short term contracting of employees is essential for any organization that wishes to reduce cost with Kabarak University as a reference point. The study therefore recommended that organization use short term contracting as one of the ways of reducing costs as many temporary employees do not enjoy benefits like pension benefits, leave allowance, medical insurance, job training and office allocation. The study ended up underscoring the importance of engaging short term employees to any organization that aspires to reduce its operational costs.